Head-To-Head Analysis: SkyWest (SKYW) vs. Its Rivals

SkyWest (NASDAQ: SKYW) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it contrast to its rivals? We will compare SkyWest to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.

Dividends

SkyWest pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. SkyWest pays out -11.3% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.8% and pay out 33.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares SkyWest and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
SkyWest $3.13 billion $618.51 million -16.36
SkyWest Competitors $8.60 billion $1.61 billion -87.09

SkyWest’s rivals have higher revenue and earnings than SkyWest. SkyWest is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

SkyWest has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, SkyWest’s rivals have a beta of 1.20, suggesting that their average share price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for SkyWest and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SkyWest 0 2 2 1 2.80
SkyWest Competitors 301 1049 2153 95 2.57

SkyWest presently has a consensus target price of $43.50, indicating a potential downside of 6.05%. As a group, “Airlines” companies have a potential downside of 14.69%. Given SkyWest’s stronger consensus rating and higher possible upside, equities analysts clearly believe SkyWest is more favorable than its rivals.

Profitability

This table compares SkyWest and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SkyWest -4.59% 11.10% 3.06%
SkyWest Competitors 3.83% 10.64% 3.56%

Insider & Institutional Ownership

89.4% of SkyWest shares are held by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are held by institutional investors. 3.5% of SkyWest shares are held by company insiders. Comparatively, 5.5% of shares of all “Airlines” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

SkyWest beats its rivals on 8 of the 15 factors compared.

About SkyWest

SkyWest, Inc., through its subsidiaries, SkyWest Airlines, Inc. (SkyWest Airlines) and ExpressJet Airlines, Inc. (ExpressJet), operates regional airline operations in the United States. The Company’s segments include SkyWest Airlines, ExpressJet and SkyWest Leasing. The SkyWest Airlines segment provides regional jet service to airports primarily located in the Midwestern and Western United States, as well as Mexico and Canada. The ExpressJet segment provides regional jet service to airports primarily located in the Eastern and Midwestern United States, as well as Mexico, Canada and the Caribbean. The SkyWest Leasing segment includes its E175 aircraft ownership business. As of December 31, 2016, the Company offered scheduled passenger service with approximately 3,160 daily departures to destinations in the United States, Canada, Mexico and the Caribbean. The Company’s flights are operated as Delta Connection, United Express, American Eagle or Alaska Airlines.

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